Manufacturing industries in China are gradually getting stroked by the rising cost of energy in the country. This was revealed by China’s National Bureau of Statistics early today.
The nation’s industries are struggling at a time when China, the world’s second largest economy, has to contend with a growing crunch in power supply.
A survey of manufacturing activities shows a fall from 50.1 in August to 49.6 in September. This was the first time the official survey showed a shrink in activities since the Covid-19 pandemic began.
Power shortages began gradually in June but have worsened since then, a situation which has led to soaring coal prices. Invariably, many industries are forced to cut output due to power shortages which is a threat to the country’s economy and the world at large as the global market would soon begin to experience scarcity in the supply of many products.
Experts have expressed that the hottest topic from China may soon shift from the Evergrande story to power supply crunch.
